City Bank has announced a salary restructuring initiative to help employees shopping with rising inflation.
This decision will increase the bank’s total salary expenditure to Tk1,210 crore annually by next year.
The bank's Board of Directors has approved an annual salary increment of Tk162 crore for 2024, which will culminate in a total increase of Tk300 crore by the end of 2025, including PMP adjustments and bonuses.
These raises are also being given to all support staff, outsourced staff, contractual employees, and management trainees.
The updated salary structure will be implemented on November 1, 2024, and employees will see the revised amounts in their December payroll, including adjustments for November.
Aziz Al Kaiser, chairman of City Bank, said: “Our employees are the backbone of the bank. By aligning compensation with market standards, we aim to create a workplace where everyone thrives.”
City Bank MD and CEO Mashrur Arefin said: “The bank’s profit has increased manifold during my six-year tenure as CEO. Operating profit, which stood at Tk699 crore, is now surpassing the Tk2,000 crore mark this year.
“It is our moral obligation to ensure our staff can lead comfortable lives with their families during these challenging times,” he added.
The initiative follows an in-depth salary survey conducted by Cerebrus Consultants Ltd, comparing City Bank’s compensation packages with those of peer banks.
The restructuring is also designed to bring salaries closer to market averages while maintaining fairness. Employees whose current salaries are significantly below market standards will receive higher percentage increases, while those closer to market averages will see comparatively smaller increments.
From assistant officer to senior executive vice-president levels, the salary increments range from 10% to 50%, with an average increase of around 23%.
Regardless of current salary levels, a minimum increment of Tk10,000 has been ensured for all employees, while the maximum increase has reached Tk60,000 in some cases.
